Partners on $12 million schools contract split

The firms gave money to Proposition J, school board candidates

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A partnership that won a $12 million construction management contract from the San Diego Unified School District just four months ago has dissolved, raising new questions about how the contract was awarded in the first place.

The partners, San Diego-based Gafcon Inc. and Sacramento-based Vanir Construction Management, announced the split last month.

The consortium was awarded one of three contracts to help the district manage the $2.1 billion Proposition S bond program, approved by voters in 2008.

In a joint letter signed by Gafcon President Yehudi Gaffen and Vanir President Mansour Aliabadi, the firms cited philosophical differences for the split.

San Diego Unified officials say the school board will vote this month to cancel the contract with Gafcon Vanir LLC and will decide how to fill the void after its next round of bond sales in April or May.

Gafcon manages several major school district building campaigns, including at Carlsbad Unified and Grossmont Union High School districts. Vanir, which is based in Sacramento, was seeking its first major San Diego County schools’ contract.

Gafcon-Vanir secured the contract in November. Out of six finalists, the partnership had the lowest-scoring proposal in the first round of the process, based on paperwork and qualifications.

The six finalists proceeded to an interview process, consisting of a 10-minute presentation and 35-minute question-and-answer session. Gafcon-Vanir succeeded at that level.

Gaffen had political ties to one of the five members of the selection committee — Andy Berg of the National Electrical Contractors Association. Gaffen served on the campaign committee for the unsuccessful 2010 school district parcel tax measure, Proposition J, which Berg chaired.

Gaffen issued a statement for this story emphasizing his firm’s experience. Berg said the high interview scores he gave Gafcon were based on merit — not politics.

“For anyone to speculate otherwise would be patently false,” Berg said. “I was not the only one who gave Gafcon a high score. They did a great job in the interview, and I graded them accordingly.”

Gafcon gave $30,000 to Proposition J — more than the other finalists for the construction management contracts combined. Half of that was a loan that Berg’s Prop. J committee still owes to Gafcon.

District officials said Berg’s campaign alliance with Gaffen would not constitute a conflict for Berg on the interview panel.

“The reason why many of these people are on these committees is because they are active within the community, in some cases politically,” said Phil Stover, the district deputy superintendent of business. “It would be too thick of a web to untangle.”

Gaffen also donated money to 2010 school board campaigns.

Gafcon and Vanir contributed $2,700 to Scott Barnett’s $31,800 campaign, and $2,000 to Kevin Beiser’s $61,000 campaign. Gafcon also hosted two fundraisers for Barnett, and one for Beiser, raising an unknown amount of money because state forms do not require such an accounting.

Once elected, Barnett named Berg to serve on the citizens oversight committee for Proposition S, citing Berg’s experience and expertise. That appointment put Berg in a position to join the interview committee for the construction management contract.

After the interview committee selected Gafcon-Vanir, both Barnett and Beiser took part in the 5-0 vote to award the contract. Barnett said that Gafcon’s contributions did not play a role in his decision to vote in favor of the contract.

“Gafcon (along with two other companies/teams) was recommended as a result of an independent review process developed by district construction and procurement staff, which included several citizens,” Barnett said.

He noted that he opposed Prop. J, minimizing any political connection to Berg.

“Every vote I take is based on two factors,” Barnett said. “What is best for the taxpayers and what is best for the kids. I think I have proven myself to be one of the most independent school board members ever.”

Barnett added, "This story was manufactured by losing bidders of the contract and a reporter with a personal grudge against the school district."

One of the firms that scored better on paper, Arcadis, attempted to file a grievance with the district, but the district determined state law contains no grievance process for this type of contract.

District officials said the process was above-board.

“It was a transparent process,” said Bernard Rhinerson, the school district’s chief of staff. “I don’t know how else to put it.”

Panelists who agreed with Berg’s assessment of the interviews also said the outcome had to do with experience, not politics.

“They were head and shoulders above the other presenters,” said Douglas Gray, one of the two citizens committee members on the panel. “That’s why I voted for them.”

Berg expressed disappointment in Gafcon-Vanir’s dissolution.

“I want the district to receive the best in services. Based on what I heard on the day of the interviews, I thought that team was the best, so of course that is disappointing,” he said. “However, I know that all the finalists, and some that didn’t make the cut, are quite capable. It is not as if the district will be left without options.”